The Financial Services Authority (OJK) has said that there has been a shift in the life insurance portfolio mix, with endowment policies contributing the biggest share to the sector, taking the crown from unit-linked products.
Total life insurance premiums reached IDR135.64tn ($8.65bn) in the first nine months of this year, 2.73% higher compared to the corresponding period in 2023. Of this total, the largest premium income was generated by endowment insurance with IDR41.66tn or 30.72%, says Mr Ogi Prastomiyono, the chief executive of the OJK Insurance, Guarantee, and Pension Fund Supervision division in a statement.
Unit-linked life products generated premium income of IDR37.21tn, representing 27.43% of total life insurance premiums in the first three quarters of this year.
While endowment insurance premiums rose by 12.7% year on year in the first nine months of 2024, unit-linked insurance business continued to contract, falling by 15.4% in the first three quarters. However, the decline has been slowing this year to date.
Unit-linked products generated premiums of IDR85.3tn for the full year in 2023, plunging by 22.6% compared to 2022. They formed 48% of the total life insurance premiums of IDR177.66tn in the whole of 2023.